/biz/ - Business & Finance

>>1005715
>> Cont
The difference in paying 800k of personal income as tax and 800k of corporate income as tax is roughly 100k (300kvs200k) but in terms of how I can spend it there is no difference. Some would call this a “loophole” but it’s just a part of the tax system meant to encourage business owners to generate more profits. Ultimately if I could’ve written off that 800k as some sort of business expense then yeah tax wise that would be great but that cottage isn’t going to pay for itself you know :P. Once you own a company, the line between your income and expenses becomes a little fuzzy. Like I’m leasing 10 cars right now (3 personal, 7 bussiness) and a bunch of engineering tech. Officially paying for the lease is an “expense” but since I plan to buyout at the end of the lease, I’m essentially paying off a personal asset bit by bit and counting it as an expense. Now at the end of the business cars leas’ (Pic related, in assorted colours), there’s a 15k buyout that is counted as a personal expense, but the rest of the cost was tax deductible even though the car now counts as an asset. The interesting thing about engineering equipment is that the buyout at the end of the lease is only 1 dollar. The government allows for this in order to assist businesses in paying off the massive costs they entail. So really I’m spending hundreds of thousands of dollars on equipment that become my personal assets, and it is all tax deductible.